2010 Disciplinary Actions

Thomas M. Ariola, Jr. of Waterbury, Connecticut
As a result of a decision by a hearing panel of the Joint Trial Board, Mr. Ariola’s AICPA membership was terminated effective July 2, 2010. Mr. Ariola was found guilty of violating AICPA Bylaw 7.4.6 by failing to cooperate with the Ethics Charging Authority in an investigation of his professional conduct.

Philip J. Katz of Brooklyn, New York
As a result of a decision by a hearing panel of the Joint Trial Board, Mr. Katz’ AICPA membership was terminated effective July 2, 2010. Mr. Katz was found guilty of violating Rule 501 – Acts Discreditable of the AICPA’s Code of Professional Conduct by failing to comply with the directives of a previous hearing panel’s decision.

William B. Katz of Brooklyn, New York
As a result of a decision by a hearing panel of the Joint Trial Board, Mr. Katz’ AICPA membership was terminated effective July 2, 2010. Mr. Katz was found guilty of violating Rule 501 – Acts Discreditable of the AICPA’s Code of Professional Conduct by failing to comply with the directives of a previous hearing panel’s decision.

Steven S. Gallers of Tamarac, Florida
As a result of a decision by a hearing panel of the Joint Trial Board,Mr. Gallers’ AICPA membership was terminated effective July 8, 2010. Mr. Gallers was found guilty of violating AICPA Bylaw 7.4.6 for failing to comply with the terms of a settlement agreement.

James T. Jubb of Baltimore, Maryland
As a result of a decision by a hearing panel of the Joint Trial Board, Mr. Jubb’s AICPA membership was terminated effective July 2, 2010. Mr. Jubb was found guilty of violating AICPA Bylaw 7.4.6 by failing to cooperate with the Ethics Charging Authority in an investigation of his professional conduct.

David Monaghan of Tulsa,Oklahoma
As a result of a decision by a hearing panel of the Joint Trial Board, Mr. Monaghan’s AICPA membership was terminated effective July 8, 2010. Mr. Monaghan was found guilty of violating AICPA Bylaw 7.4.6 for failing to cooperate with the Ethics Charging Authority by not providing a substantive response to communications.

Hugh B. Webster of Yanceyville, North Carolina
As a result of a decision by a hearing panel of the Joint Trial Board, Mr. Webster’s AICPA membership was terminated effective July 8, 2010. Mr. Webster was found guilty of violating AICPA Bylaw 7.4.6 by failing to cooperate with the Ethics Charging Authority in an investigation of his professional conduct.

Mark Bloom of New York, New York
Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Bloom’s AICPA membership was terminated, effective July 20, 2010, as a result of the SEC barring Mr. Bloom from association with any investment adviser and suspending him from appearing or practicing before the Commission as an accountant. This decision was based on the SEC’s findings that Mr. Bloom pled guilty to the allegations, inter alia, that he defrauded investors and obtained money and property by means of materially false and misleading statements; he used the United States mails to send false account statements; he caused commercial interstate carriers to deliver investors’ checks to him via wire; transferred investor funds to unlawfully renovate his home and purchase artwork and jewelry; and obstructed the internal revenue laws by, among other things, promoting tax shelters.

Peter S. Bromberg of Ft. Lauderdale, Florida
Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Bromberg’s AICPA membership was terminated, effective June 11, 2010, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year.Mr. Bromberg pled guilty to violating Title 15, U.S.C. 78m(a), 78ff; 17 CFR 240.12b-20, 240.13a-1371, False Statements in a Report Filed with the United States Securities and Exchange Commission.

John A. Campbell of Kalamazoo, Michigan
Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Campbell’s AICPA membership was terminated, effective June 29, 2010, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year.Mr. Campbell pled guilty to violating Title 18, U.S.C. Section 371, Conspiracy to Defraud the United States.

Daniel Chiu of Jersey City, New Jersey
Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Chiu’s AICPA membership was terminated, effective August 9, 2010, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year.Mr. Chiu pled guilty to violating Title 18, U.S.C. Section 1343, Wire Fraud.

Catherine Fang of Plano, Texas
Under the automatic disciplinary provisions of the Institute’s bylaws, Ms. Fang’s AICPA membership was terminated, effective July 21, 2010, as a result of the SEC denying her the privilege of appearing or practicing before the Commission as an accountant. This decision was based on the SEC’s findings that Ms. Fang engaged in improper professional conduct pursuant to Rule 102(e)(1)(ii) of the Commission’s Rules of Practice by repeatedly failing to perform in accordance with applicable professional standards in her audit of a public company she audited from November 2005 through February 2009.

Thomas P. Flanagan of Chicago, Illinois
Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Flanagan’s AICPA membership was terminated, effective August 9, 2010, as a result of the SEC denying him the privilege of appearing or practicing before the Commission as an accountant. This decision was based on the SEC’s allegations that while a partner and Vice Chairman of a “Firm”, he traded in the securities of multiple “Firm” clients on the basis of inside information that he learned through his duties as a “Firm’s” partner.

Lawrence Goldman of Hagerstown, Maryland
Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Goldman’s AICPA membership was terminated, effective June 22, 2010, following revocation of his CPA certificate and license to practice by the Pennsylvania State Board of Accountancy in connection with his guilty plea to a felony charge of voluntary manslaughter.

Wanda Joyce Smithson of Leoma, Tennessee
Under the automatic disciplinary provisions of the Institute’s bylaws, Ms. Smithson’s AICPA membership was terminated, effective August 9, 2010, as a result of the Alabama State Board of Public Accountancy revoking her CPA certificate and permit to practice based on acts that resulted in the revocation of her authority to practice as a CPA in another state, and for failing to respond to the Board’s communication.

David C. Sullivan of Indianapolis, Indiana
Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Sullivan’s AICPA membership was terminated, effective June 11, 2010, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year.Mr. Sullivan pled guilty to violating Title 18, U.S.C. Section 1343, Fraud by Wire, Radio, or Television.

July

Lawrence Hecht of Rockland, New YorkAs a result of an investigation of alleged violations of the Code of Professional Conduct of the AICPA, Mr. Hecht entered into a settlement agreement under the Joint Ethics Enforcement Program, effective May 29, 2010.

Information came to the attention of the Ethics Charging Authority (“ECA”) (comprised of the AICPA Professional Ethics Executive Committee), alleging a potential disciplinary matter with respect to Lawrence Hecht.

Mr. Hecht advised that he would be willing to sign a settlement agreement charging him with violating AICPA Bylaw Section 7.4.6 for failing to cooperate with the ECA in its investigation of his alleged misconduct.

Agreement:

In consideration of the ECA forgoing any further proceedings in this matter, Mr. Hecht agrees as follows:

To waive his rights to a hearing under AICPA Bylaw Section 7.4;

To neither admit nor deny the above-specified charge;

To be expelled from membership in the AICPA;

That the ECA shall publish his name, the charges and the terms of this settlement agreement.

William D. Wiseman of Talking Rock, GeorgiaAs a result of an investigation of alleged violations of the Code of Professional Conduct of the AICPA, Mr. Wiseman entered into a settlement agreement under the Joint Ethics Enforcement Program, effective June 4, 2010.

Information came to the attention of the Ethics Charging Authority (“ECA”) (comprised of the AICPA Professional Ethics Executive Committee) in the form of a December 1, 2005 referral from the Securities Exchange Commission (“SEC”) regarding Mr. Wiseman’s conduct as Chief Financial Officer of a division of an SEC registrant.

After an investigation, Mr. Wiseman was charged with violating the following rule of the AICPA Code of Professional Conduct:

Rule 501-4 – Negligence in the preparation of financial statements or records

The respondent failed to prevent the Company from incorrectly amortizing a reserve account’s debit balance instead of charging it to the current period.

The respondent incorrectly allowed the Company to record a $1.5 million receivable as the result of an informal agreement with a client to recover cost over runs on a project. In addition, once it became apparent that the receivable was uncollectible the respondent allowed the Company to write off the balance over a period of months rather than when it was deemed uncollectible.

Agreement:

In consideration of the ECA forgoing further investigation of Mr. Wisemans’s conduct as described above and in consideration of the ECA forgoing any further proceedings in the matter, Mr. Wiseman agrees as follows:

To waive his rights to a hearing under AICPA bylaws section 7.4;

To neither admit nor deny the above specified charges;

To be expelled by the AICPA; and

That the ECA shall publish his name, the charges, and the terms of this settlement agreement.

John G. Makula of Park Ridge, IllinoisAs a result of a decision by a hearing panel of the Joint Trial Board, Mr. Makula had his AICPA membership terminated, effective May 26, 2010, following a denial by an ad hoc committee of the Joint Trial Board of a request for review of the decision of the original trial board. Mr. Makula was found guilty of violating AICPA Code of Professional Conduct Rule 501-Acts Discreditable for failing to follow the directives of a previous hearing panel decision.

Ronald I. Anson of Los Angeles, CaliforniaUnder the automatic disciplinary provisions of the Institute’s bylaws, Mr. Anson had his AICPA membership terminated, effective March 18, 2010, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Mr. Anson pled guilty to violating Title 18, USC Section 371, Conspiracy.

Charles Cleghorn of Jenkintown, PennsylvaniaUnder the automatic disciplinary provisions of the Institute’s bylaws, Mr. Cleghorn had his AICPA membership terminated, effective March 5, 2010, following revocation of his CPA certificate by the Pennsylvania State Board of Accountancy for failing to comply with the directives of the Board’s Adjudication and Order.

Terance Kelley of Independence, OhioUnder the automatic disciplinary provisions of the Institute’s bylaws, Mr. Kelley had his AICPA membership terminated, effective March 5, 2010, following disciplinary action imposed by the Securities and Exchange Commission. Mr. Kelley was suspended by the SEC from appearing or practicing before the Commission as an accountant with the right to petition for reinstatement after five years of the SEC’s Order. This decision was based on the SEC’s findings that during a 2006 audit of an SEC registrant’s financial statements, Mr. Kelley violated numerous professional standards by failing to obtain written representations from the registrant’s management, and failing to exercise due care and professional skepticism.

Craig Showvaker of Gettysburg, PennsylvaniaUnder the automatic disciplinary provisions of the Institute’s bylaws, Mr. Showvaker had his AICPA membership terminated, effective March 18, 2010, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year.Mr. Showvaker pled guilty to violating Title 18, USC Section 1341, Mail Fraud.

Terry L. Smith of Umpire, ArkansasUnder the automatic disciplinary provisions of the Institute’s bylaws, Mr. Smith had his AICPA membership terminated, effective March 5, 2010, following revocation of his CPA certificate by the Arkansas State Board of Accountancy for violating the Board’s Code of Professional Conduct in connection with the suspension of his law license for a period of three years.

Scott Zecher of Teaneck, New JerseyUnder the automatic disciplinary provisions of the Institute’s bylaws, Mr. Zecher had his AICPA membership terminated, effective March 25, 2010, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year.Mr. Zecher pled guilty to violating Title 18, USC Section 371, Conspiracy to Defraud the United States.

Harold Dischino of Fairfield, New JerseyAs a result of a decision by a hearing panel of the Joint Trial Board, Mr. Dischino had his AICPA membership terminated effective March 19, 2010. Mr. Dischino was found guilty of violating AICPA Bylaw 7.4.6 by failing to cooperate with the Ethics Charging Authority in an investigation of his professional conduct.

Courtney V. Johnson of Union, New JerseyAs a result of a decision by a hearing panel of the Joint Trial Board, Mr. Johnson had his AICPA membership terminated effective February 17, 2010 following a denial by an ad hoc committee of the Joint Trial Board of a request for review of the decision of the original trial board. Mr. Johnson was found guilty of violating AICPA Bylaw 7.4.6 for failing to cooperate with the Ethics Charging Authority in an investigation of his professional conduct.

Rudolph G. Vargas of San Jose, CaliforniaAs a result of a decision by a hearing panel of the Joint Trial Board, Mr. Vargas had his AICPA membership terminated effective February 17, 2010 following a denial by an ad hoc committee of the Joint Trial Board of a request for review of the decision of the original trial board. Mr. Vargas was found guilty of violating AICPA Bylaw 7.4.6 by failing to comply with the directives of a letter of required corrective action issued as a result of a disciplinary investigation and by failing to cooperate with the Ethics Charging Authority in an investigation of his professional conduct.

Dale R. Bates of Jefferson City, MissouriUnder the automatic disciplinary provisions of the Institute’s bylaws, Mr. Bates had his AICPA membership terminated, effective January 22, 2010, following revocation of his CPA certificate and license to practice by the Missouri State Board of Accountancy for violating the professions’ code of professional conduct by using his client’s funds for his own benefit.

Jack E. Garrett of Los Angeles, California
Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Garrett had his AICPA membership terminated, effective March 16, 2010, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year.Mr. Garrett pled guilty to violating Title 26, USC Section 7206(2), Aiding and Assisting in the Preparation of a False Tax Return.

Robert Korkuc of Holtsville, New YorkUnder the automatic disciplinary provisions of the Institute’s bylaws, Mr. Korkuc had his AICPA membership terminated, effective January 8, 2010, because of a final judgment of conviction for crimes punishable by imprisonment for more than one year.Mr. Korkuc pled guilty to violating Title 18, USC Section 371, Conspiracy to Commit Securities Fraud and Title 15, USC Section 78 & 78ff, Securities Fraud.

Charles Gray of Oklahoma City, OklahomaUnder the automatic disciplinary provisions of the Institute’s bylaws, Mr. Gray had his AICPA membership terminated, effective March 16, 2010, following disciplinary action imposed by the Securities and Exchange Commission (“SEC”). Mr. Gray was denied the privilege by the SEC of appearing or practicing before the Commission as an accountant for engaging in improper professional conduct pursuant to Section 4C of the Exchange Act and Rule 102(e)(1)(ii) of the Commission’s Rules of Practice.

Michael J. Moore of Las Vegas, Nevada Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Moore had his AICPA membership terminated, following disciplinary action imposed by the Public Company Accounting Oversight Board. Mr. Moore was barred from being an associated person of a registered public accounting firm based on their findings that he violated Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, PCAOB rules and auditing standards in auditing the financial statements of three issuer clients from 2006 to 2008, PCAOB rules and quality controls standards, and noncooperation with a Board investigation.

Lawrence Scharfman of Boynton Beach, FloridaUnder the automatic disciplinary provisions of the Institute’s bylaws, Mr. Scharfman had his AICPA membership terminated, effective March 16, 2010, following disciplinary action imposed by the Public Company Accounting Oversight Board. Mr. Scharfman wasbarred from being an associated person of a registered public accounting firm based on the PCAOB’s findings that Mr. Scharfman violated Section 10A(b) of the Securities Exchange Act of 1934, PCAOB rules and PCAOB auditing and independence standards, in auditing the financial statements of three issuer clients during the years 2006 and 2007.

Howard I. Smith of New York, New YorkUnder the automatic disciplinary provisions of the Institute’s bylaws, Mr. Smith had his AICPA membership terminated, effective March 16, 2010, following disciplinary action imposed by the Securities and Exchange Commission (“SEC”). Mr. Smith was suspended by the SEC from appearing or practicing before the Commission as an accountant for his involvement in numerous improper accounting transactions that inflated the Company’s reported financial results between 2000 and 2005.

Jerry Wells of Columbia, South CarolinaUnder the automatic disciplinary provisions of the Institute’s bylaws, Mr. Wells had his AICPA membership terminated, effective November 24, 2009, following disciplinary action imposed by the Securities and Exchange Commission (“SEC”). Mr. Wells was suspended by the SEC from appearing or practicing before the Commission as an accountant. This decision was based on their findings that between 2003 and 2008, Mr. Wells allegedly, fraudulently obtained more than $2.9 million from his Company by misusing the Company’s expense reimbursement process and corporate credit card to pay his personal expenses and otherwise orchestrating unapproved, improper payments by the Company for his personal benefit; and that in an effort to conceal his misconduct, he knowingly caused the Company to record these allegedly illicit payments as legitimate business expenses and asset purchases and thereby materially misrepresented its financial performance and that as a result of his actions, the Company allegedly filed materially false and misleading financial information for its quarterly and annual reports during the period in question.

Stewart Parness of New City, New YorkIn lieu of a full investigation of alleged violations of the Code of Professional Conduct of the AICPA, Mr. Parness entered into a settlement agreement under the Joint Ethics Enforcement Program.

Charge:

Mr. Parness violated Rule 501–Acts Discreditable in that he misrepresented the status of his pending litigation during the AICPA’s investigation related to his Offer of Settlement with the SEC for violation of Rule 13b2-1 under the Exchange Act.

Agreement:

In consideration of the ECA forgoing any further proceedings in this matter, Mr. Parness agrees as follows:

To waive his rights to a hearing under AICPA bylaw section 7.4;

To neither admit nor deny the above-specified charge;

To expulsion from membership in the AICPA, effective July 21, 2009;

That the ECA shall publish his name, the charges and the terms of this settlement.

James M. Calcote, Jr. of New Iberia, LouisianaAs a result of a decision by a hearing panel of the Joint Trial Board, Mr. Calcote had his AICPA membership terminated effective October 23, 2009. Mr. Calcote was found guilty of violating AICPA Bylaw 7.4.6 for failing to cooperate with the Ethics Charging Authority in an investigation of his professional conduct.

Brian D. Postma of Saginaw, MichiganAs a result of a decision by a hearing panel of the Joint Trial Board, Mr. Postma had his AICPA membership terminatedeffective October 23, 2009. Mr. Postma was found guilty of violating AICPA Bylaw 7.4.6 by failing comply with the terms of a letter of required corrective action issued as a result of a disciplinary investigation.

Linda S. Roxbury of Maple Grove, MinnesotaAs a result of a decision by a hearing panel of the Joint Trial Board, Ms. Roxbury had her AICPA membership terminated effective October 23, 2009. Ms. Roxbury was found guilty of violating AICPA Bylaw 7.4.6 for failing to cooperate with the Ethics Charging Authority in an investigation of her professional conduct.

Ann Marie Albert of Jenkintown, Pennsylvania Under the automatic disciplinary provisions of the Institute’s bylaws, Ms. Albert had her AICPA membership terminated, effective November 5, 2009, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Ms. Albert pled guilty to a felony charge of aggravated assault with a deadly weapon.

Irwin E. Bloom of Millbrook, New YorkUnder the automatic disciplinary provisions of the Institute’s bylaws, Mr. Bloom had his AICPA membership terminated, effective November 5, 2009, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Mr. Bloom was found guilty of violating Title 26 USC Section 7201, Attempt to Evade Income Taxes.

Frank Mangano of Kings Park, New YorkUnder the automatic disciplinary provisions of the Institute’s bylaws, Mr. Mangano had his AICPA membership terminated, effective October 19, 2009, because of a final judgment of conviction for a crime punishable by imprisonment for more than one year.Mr. Mangano pled guilty on October 13, 1999 to violating Title 18, USC Section 371, Conspiracy to Commit Mail Fraud.

Marci Plotkin of North Caldwell, New JerseyUnder the automatic disciplinary provisions of the Institute’s bylaws, Ms. Plotkin had her AICPA membership terminated, effective October 19, 2009,because of a final judgment of conviction for a crime punishable by imprisonment for more than one year. Ms. Plotkin pled guilty to violating Title 18, USC Section 371, Conspiracy to defraud the U.S. by impeding and impairing the IRS and aiding and abetting the filing of a false partnership tax return.

R. Scott Hollar of Charleston, South Carolina
Under the automatic disciplinary provisions of the Institute’s bylaws, Mr. Hollar had his AICPA membership terminated, effective October 19, 2009, following revocation of his CPA certificate by the South Carolina Board of Accountancy. Mr. Hollar was ordered by the state board to return his CPA certificate based on a finding that he had continued to engage in practice as a certified public accountant after the state board had revoked his license and issued a cease and desist order.